ROIC Related Topics 
Strategy Driven
JULY 13, 2011
Supplementing profits with ROIC and revenue growth is a step in the right direction to ensure that the profits a business earns are actually creating value, not simply over-consuming capital that another company could better deploy. However, profits, ROIC, and revenue growth are backward looking.
Harvard Business Review
FEBRUARY 7, 2011
Take, for instance, a group of companies that currently have high returns on invested capital (ROIC). If you follow that group over time, you would see their ROICs revert back toward the cost of capital. This means that an extreme outcome, good or bad, will be followed by an outcome that has an expected value closer to the mean.
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Harvard Business Review
DECEMBER 19, 2011
During the current recession, overall consumer spending has declined or held flat, sales per square foot have not improved significantly, and retailers' return on invested capital (ROIC) has suffered dramatically. The most obvious victims of this shift so far are music, video, and book sellers.
Harvard Business Review
AUGUST 27, 2015
companies’ return on invested capital (ROIC), and compare it with economy-wide ROIC estimates constructed by Deloitte. Economywide ROIC has trended downward since the 1980s, falling from above 6% in the mid-1960s to 5% in 1980, then to 3% in 1990, and to only a bit more than 1% by 2010. An increasing number of U.S.
Harvard Business Review
DECEMBER 8, 2011
Moreover, when Porter defines strategy, he is really talking about what constitutes a good strategy — one that will result in a higher ROIC than the industry average. It's the positioning you choose that will result in achieving the goal; the actions are the path you take to realize the positioning. Mistake #5.
Harvard Business Review
MARCH 7, 2013
Like Return on Invested Capital (ROIC), which reflects what a company earns, how much capital it needs to earn it and the ratio between the two, ROIT reveals what the company earns, how much it has to spend on its talent to earn it, and what the ratio is between the two.
Harvard Business Review
APRIL 16, 2015
The results can be impressive: if your firm’s return on invested capital is 8% and you have an 8% cost of capital, a 1% improvement in ROIC will increase firm value by 19%. There are just two ways to increase ROIC: improve operating profit (by increasing revenues or cutting costs) or invest capital more wisely.
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